Chapter 4 | CLIMATE FINANCE TARGETS – ROADMAP 2030
Thematic Priorities
and animal rearing). The OPEC Fund plans to expand its geographical coverage of nature-based solutions projects from Asia to Africa and Latin America in collaboration with Arab Coordination Group members. One significant intervention will be in the SIDS, where part- nerships with regional associations and the United Nations Framework Convention on Climate Change (UNFCCC) will help clear bottlenecks in financing for climate mitigation, rehabilitation from climate impacts and infrastructure development. The OPEC Fund will devote significant re- sources to building the capacity of SIDS and facilitating forums to mobilize capital for climate action.
The annual accounting of the OPEC Fund’s climate finance investments indicates that the institution has achieved and exceeded its climate finance targets for 2025. Following the climate finance figures of 17 percent achieved in 2021, the OPEC Fund took several steps to bolster its share of climate finance. Firstly, a focused approach was adopt- ed to originate projects with significant climate finance components. Secondly, concerted efforts were made to strengthen the climate components in projects and to highlight these in the project approval documents. Thirdly, the OPEC Fund adopted an approach to assist partner countries in updating their climate and environmental policies and regulations. Implementing the OPEC Fund’s climate action strategy will require intensified efforts to achieve higher levels of climate financing and achieving targets. As outlined in the section on the climate action strategy, the Climate Finance and Energy Innovation Hub will be a crucial tool in assist- ing partner countries define low-emission pathways, par- ticularly in the energy sector. At the same time, the OPEC Fund will continue collaborat- ing with partners in the Global South to address the im- pacts of climate change, which are increasingly manifest- ed in unprecedented and severe weather events. The Food Security and Climate Adaptation Facility will be essential in advancing this agenda. Consequently, there will be a concerted effort to enhance climate adaptation financing in fragile and vulnerable regions to protect existing assets, support new infrastructure and safeguard community live- lihoods from climate-related adversities. The OPEC Fund will also actively participate in advancing projects featuring nature-based solutions in partnership with the Asian Development Bank, addressing issues of biodiversity and ecosystem conservation on a large scale. This will involve local communities and address natural resource depletion impacting livelihoods (e.g., fisheries
Achieving Climate Finance Targets
To achieve the OPEC Fund’s climate finance targets it is crucial to integrate climate change considerations in the project cycle. Starting in 2025, climate change will be fully addressed in all projects. All new projects (excluding trade finance) will undergo climate screening to identify potential climate actions, including climate-proofing and adaptation options. The OPEC Fund will systematically include low-carbon and climate resilience opportunities in project planning and state the results of this review in the project approval documentation. Additionally, the OPEC Fund will monitor, evaluate and draw lessons from the climate change per- formance of its projects for improvement and replication. Historically, the OPEC Fund’s climate contributions have been concentrated in development financing in the ener- gy, water and agriculture sectors. This focus will be main- tained in the future. In addition, special emphasis will be placed on development policy loans to enhance policies and regulations on climate, environment and natural re- sources in the Global South.
The OPEC Fund will continue strategic investments in climate-related projects that contribute to climate
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